Gross mortgage lending held steady in September and was an estimated £16.2 billion, according to the Council of Mortgage Lenders.
This is only a slight change to August’s gross lending total of £16.4 billion and is 41% higher than September last year (£11.5 billion).
Gross lending for the third quarter of 2013 was an estimated £49.3 billion. This represents a 17.6% increase on the second quarter of 2013 and a 32% increase on the third quarter of last year. This is the highest lending amount by quarter since quarter three of 2008.
CML Chief Economist Bob Pannell comments:
“Indicators suggest we are witnessing the strongest house purchase performance in five years. House prices too have revived but modestly, aside from a resurgent London market.
“With the Help to Buy mortgage guarantee scheme becoming fully operational in January and firms implementing the mortgage market review in April 2014, it may be several months into 2014 before we get a true gauge of the scale and reach of Help to Buy. For now, the scheme has launched against an already recovering UK housing market with several quarters of improving credit availability, growing competition, and strengthening demand.”
David Newnes, director of LSL Property Services, owners of Your Move and Reeds Rains commented: “We’re starting to see mortgage lending plateau following a barnstorming surge over the past nine months. The recovery is now entering a more mature phase. We’ve been spoiled this year, and have come to expect big month-on-month increases in mortgage lending. Those leaps are probably a thing of the past. But lending should continue to inch upwards as long as the economy continues to grow. The biggest challenge is improving the cost of living and people’s personal finances, which are still under brutal siege from high inflation, low savings rates and weak wage growth. There won’t be a full economic recovery – or mortgage market recovery – until there is a personal finance recovery.”
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